HRM Report: Analyzing Compensation's Impact on Society and Community

This report explores the impact of compensation systems on society, focusing on the short-term adverse impacts such as the rising cost of employees and their families during injuries. It argues that the compensation system's negative effects are balanced by state-provided benefits and that large organizations are the primary drivers behind the challenges faced by small businesses. The report also touches on the influence of compensation on employee performance and highlights how advancements in technology allow organizations to improve productivity without altering compensation systems. The report references the impact of compensation and promotional opportunities on employee retention in academic institutions and how perceived inequalities and competition affect the community.

Running head: HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCE MANAGEMENT
Name of the Student
Name of the University
Author note

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HUMAN RESOURCE MANAGEMENT
No, organizations should not worry about the impact the compensation systems have on
the society or the local community. This is because the adverse impact of the compensation
system is in the short term. this is led by a specific set of the impact such as the rising cost of the
employees and their families during injuries due to lack of compensation. However, there are
other laws and benefits offered by the state to the employees and many families that balance out
these short term adverse impact. In addition to this, it is seen that large organization are the
major reason behind the shutting down of small companies (Mayer, Running & Bergstrand,
2015). This is because the small business is unable to compete with the compensation offered by
large companies to their employees and the impact it is having on society. Thus, there is no need
for the small businesses to worry about their compensation system on society because even if the
society is unhappy with the compensation they receive yet the small business will be unable to
offer them equal to large businesses. Moreover, the compensation system tends to impact the
performance of the employees to a large extent and thus a poor productivity level in the economy
(Bibi et al., 2017). However, with advancements in technology, the organizations are able to
improve their productivity level without having to worry about any changes in their
compensation system and the impact it has on the employees and the community as a whole.

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HUMAN RESOURCE MANAGEMENT
References
Bibi, P., Pangil, F., Johari, J., & Ahmad, A. (2017). The Impact of Compensation and
Promotional Opportunities on Employee Retention in Academic Institutions: The
Moderating Role of Work Environment. International Journal of Economic
Perspectives, 11(1).
Mayer, B., Running, K., & Bergstrand, K. (2015, June). Compensation and community
corrosion: perceived inequalities, social comparisons, and competition following the
Deepwater Horizon oil spill. In Sociological Forum (Vol. 30, No. 2, pp. 369-390).